Correlation Between GALENA MINING and Telefonaktiebolaget
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Telefonaktiebolaget at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GALENA MINING and Telefonaktiebolaget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GALENA MINING LTD and Telefonaktiebolaget LM Ericsson, you can compare the effects of market volatilities on GALENA MINING and Telefonaktiebolaget and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GALENA MINING with a short position of Telefonaktiebolaget. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Telefonaktiebolaget.
Diversification Opportunities for GALENA MINING and Telefonaktiebolaget
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Telefonaktiebolaget is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Telefonaktiebolaget LM Ericsso in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telefonaktiebolaget and GALENA MINING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GALENA MINING LTD are associated (or correlated) with Telefonaktiebolaget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telefonaktiebolaget has no effect on the direction of GALENA MINING i.e., GALENA MINING and Telefonaktiebolaget go up and down completely randomly.
Pair Corralation between GALENA MINING and Telefonaktiebolaget
Assuming the 90 days horizon GALENA MINING is expected to generate 19.88 times less return on investment than Telefonaktiebolaget. In addition to that, GALENA MINING is 1.94 times more volatile than Telefonaktiebolaget LM Ericsson. It trades about 0.0 of its total potential returns per unit of risk. Telefonaktiebolaget LM Ericsson is currently generating about 0.12 per unit of volatility. If you would invest 200.00 in Telefonaktiebolaget LM Ericsson on August 31, 2024 and sell it today you would earn a total of 578.00 from holding Telefonaktiebolaget LM Ericsson or generate 289.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GALENA MINING LTD vs. Telefonaktiebolaget LM Ericsso
Performance |
Timeline |
GALENA MINING LTD |
Telefonaktiebolaget |
GALENA MINING and Telefonaktiebolaget Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GALENA MINING and Telefonaktiebolaget
The main advantage of trading using opposite GALENA MINING and Telefonaktiebolaget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Telefonaktiebolaget can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Telefonaktiebolaget will offset losses from the drop in Telefonaktiebolaget's long position.GALENA MINING vs. LION ONE METALS | GALENA MINING vs. Penn National Gaming | GALENA MINING vs. GameStop Corp | GALENA MINING vs. TROPHY GAMES DEV |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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